Bitcoin: weekly market analysis (from 31 December to 6 January 2020 on USDT / BTC pair)
On January 3, the heightening of tensions between the USA and Iran ruined the cards on the table, helping to make a large bullish candle form.
Today the day started with the bulls but it is still early to start celebrating, under 8 thousand dollars we could hardly consider bullish bitcoin.
Having said that, let's immediately take a look at the graphs to try to understand together if the thread of the speech we have followed so far has really jumped or if instead what happened in the last week is not just a small accident on the way.
USDT / BTC is still early to speak of a reversal
At this moment, observing the upper time frames does not make much sense because what we have to analyze is found on the 1D and 4H graphs; on daily TF what we see is that bitcoin has just hit the bottom edge of the cloud, which represents resistance at the moment.
Despite a bullish crossing of the moving averages that occurred at the end of December, talking about a reversal is still very premature, the most likely scenario, in my opinion, is a retracement in the 7 thousand dollar zone; in any case, as mentioned, under $ 8,000 you cannot even speak of a real reversal, so we will only start to pose the problem and if the price should break that resistance.
Moving on to 4H time frame what we see clearly is that the price has moved sideways for the last month, as a result we are now in a phase where the only smart thing we can do is wait for a clear break or support or resistance.
Weekly forecast
When a coin moves sideways, deciding to open a position is a bit like throwing a coin, so clearly we are not in the ideal conditions for trading; what we have to do, therefore, is to avoid getting caught up in the enthusiasm and wait for a clear breakdown of one of the price ranges whose yield will allow us to define the trend.
We must therefore keep an eye on two price levels, the 8 thousand dollars and the 6500 dollars; if the bulls managed to bring the price above $ 8,000 we would find ourselves in an upward trend, if instead, on the contrary, it was the bears that pulled the prices down breaking the support at $ 6500 we would find ourselves in a bearish scenario.
For now there is not much more to say, the appointment is therefore for next Monday with the hope that the situation will be clearer than it is at the moment.
Please note: this post is not intended to provide in any way financial advice related to how to invest your money but it is purely educational.
